RT - Interim / Quarterly Report 2022

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT MARCH 31, 2022 AND 2021

(Stock code: 2379)

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

PWCR22000008

To the Board of Directors and Shareholders of Realtek Semiconductor Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Realtek Semiconductor Corporation and subsidiaries as at March 31, 2022 and 2021, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for qualified conclusion

As explained in Notes 4(3) and 6(7), the consolidated financial statements of certain insignificant consolidated subsidiaries, investments accounted for under equity method and the information disclosed in Note 13 were based solely on the reports prepared by those subsidiaries and investee companies, which were not reviewed by independent auditors. Total assets of these subsidiaries amounted to NT$5,860,231 thousand and NT$2,653,590 thousand, constituting 5.40% and 3.20% of the consolidated total assets as at March 31, 2022 and 2021, respectively, total liabilities amounted to NT$996,120 thousand and NT$245,498 thousand, constituting 1.61% and 0.49% of the consolidated total liabilities

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as at March 31, 2022 and 2021, respectively, and the total comprehensive (loss) income amounted to NT($305,732) thousand and NT $268,170 thousand, constituting (4.69%) and 7.33% of the consolidated total comprehensive income for the three-month periods then ended, respectively. Furthermore, the investments accounted for under equity method as at March 31, 2022 and 2021 amounted to NT$185,690 thousand and NT$155,922 thousand, respectively, and the related investment loss were NT$5,704 thousand and NT$931 thousand for the three-month periods then ended, respectively.

Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under equity method been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Realtek Semiconductor Corporation and subsidiaries as at March 31, 2022 and 2021, and of its consolidated financial performance and cash flows for the three-month periods then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Li, Tien-Yi Cheng, Ya-Huei For and on behalf PricewaterhouseCoopers, Taiwan April 22, 2022

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ review report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

(Expressed in thousands of New Taiwan dollars) (The balance sheets as at March 31, 2022 and 2021 are reviewed, not audited)

Assets	Notes	March31,2022	December31,2021 AMOUNT % `$` `7,197,351` `7` `1,952,647` `2` `43,740,876` `43` `12,796,821` `13` `3,192,184` `3` `156,928` `-` `16,548,712` `16` `659,883` `1` `86,245,402` `85` `3,644,878` `4` `80,101` `-` `191,377` `-` `6,302,938` `6` `1,587,910` `2` `41,641` `-` `2,231,694` `2` `171,321` `-` `734,651` `1` `14,986,511` `15` `$` `101,231,913` `100`	March31,2021
		AMOUNT `$` `9,630,649` `1,231,854` `47,730,479` `12,573,988` `3,289,116` `188,826` `17,466,154` `402,983` `92,514,049` `3,423,958` `80,381` `185,690` `6,554,836` `1,593,570` `42,285` `3,170,192` `202,444` `714,493` `15,967,849` `$` `108,481,898`	AMOUNT `$` `7,197,351` `1,952,647` `43,740,876` `12,796,821` `3,192,184` `156,928` `16,548,712` `659,883` `86,245,402` `3,644,878` `80,101` `191,377` `6,302,938` `1,587,910` `41,641` `2,231,694` `171,321` `734,651` `14,986,511` `$` `101,231,913`	AMOUNT `$` `7,720,129` `679,525` `37,544,992` `11,136,321` `3,019,486` `361,255` `9,785,315` `417,707` `70,664,730` `3,193,493` `79,821` `155,922` `5,037,145` `1,622,680` `44,644` `2,004,072` `158,153` `29,802` `12,325,732` `$` `82,990,462`	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortised cost - current 1170 Accounts receivable, net 1180 Accounts receivable, net - related parties 1200 Other receivables 130X Inventories, net 1410 Prepayments 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non-current 1535 Financial assets at amortised cost - non-current 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) 6(4) 6(5) 6(5) and 7 6(6) 6(3) 6(4) and 8 6(7) 6(8) 6(9) 6(10) 6(11)				`9` `1` `45` `13` `4` `-` `12` `1`
					`85`
					`4` `-` `-` `6` `2` `-` `3` `-` `-`
					`15`
					`100`

(Continued)

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

(Expressed in thousands of New Taiwan dollars) (The balance sheets as at March 31, 2022 and 2021 are reviewed, not audited)

Liabilities andEquity	Notes	March31,2022	December31,2021 March31,2021 % AMOUNT % AMOUNT % `9 $` `13,342,100` `13 $` `12,680,000` `15` `-` `211,100` `-` `363,209` `-` `-` `3,276` `-` `3,277` `-` `11` `11,105,568` `11` `11,180,369` `14` `-` `334,413` `-` `380,176` `1` `24` `24,645,141` `24` `14,055,953` `17` `-` `101,253` `-` `97,141` `-` `2` `1,458,340` `2` `1,192,666` `1` `-` `80,315` `-` `93,445` `-` `8` `7,539,417` `8` `7,345,824` `9` `54` `58,820,923` `58` `47,392,060` `57` `1` `1,002,799` `1` `-` `-` `1` `989,475` `1` `1,019,527` `1` `-` `103,512` `-` `90,421` `-` `1` `1,252,390` `2` `1,263,700` `2` `-` `110,490` `-` `99,171` `-` `3` `3,458,666` `4` `2,472,819` `3` `57` `62,279,589` `62` `49,864,879` `60` `5` `5,106,849` `5` `5,106,849` `6` `2` `1,101,079` `1` `2,122,008` `3` `5` `5,577,083` `5` `5,577,083` `7` `1` `1,556,049` `2` `217,036` `-` `30` `27,377,681` `27` `21,046,919` `25` `- (` `1,776,090) (` `2) (` `953,939) (` `1 )` `43` `38,942,651` `38` `33,115,956` `40` `-` `9,673` `-` `9,627` `-` `43` `38,952,324` `38` `33,125,583` `40` `100` `$` `101,231,913` `100 $` `82,990,462` `100`
Current liabilities 2100 Short-term borrowings 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Lease liabilities - current 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2550 Provisions - non-current 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common shares Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Undistributed earnings Other equity 3400 Other equity interest 31XX Equity attributable to holders of the parent company 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognized contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity

The accompanying notes are an integral part of these consolidated financial statements.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except earnings per share amounts)

(The statements of comprehensive income are reviewed, not audited)

Items Three months ended March 31
2022
2021
Notes
AMOUNT
%
AMOUNT
%
6(21) and 7
$
29,756,311
100
$
23,340,746
100
6(6) and 7
(
14,226,630 ) (
48) (
12,887,943) (
55 )
15,529,681
52
10,452,803
45
6(26)(27) and 7
(
1,235,936 ) (
4) (
1,043,558) (
4 )
(
1,033,549 ) (
3) (
662,723) (
3 )
(
7,950,943 ) (
27) (
5,750,185) (
25 )
12(2)
(
7,598 )
- (
3,550)
-
(
10,228,026 ) (
34) (
7,460,016) (
32 )
5,301,655
18
2,992,787
13
6(22)
74,343
-
102,799
1
6(23)
74,684
-
57,272
-
6(24)
(
19,827 )
-
56,507
-
6(25)
(
22,467 )
- (
25,585)
-
6(7)
(
5,704 )
- (
931)
-
101,029
-
190,062
1
5,402,684
18
3,182,849
14
6(28)
(
216,402 ) (
1) (
128,078) (
1 )
$
5,186,282
17
$
3,054,771
13
6(20)
( $
342,438 ) (
1) $
572,921
3
1,681,693
6
29,189
-
$
1,339,255
5
$
602,110
3
$
6,525,537
22
$
3,656,881
16
$
5,186,268
17
$
3,054,765
13
14
-
6
-
$
5,186,282
17
$
3,054,771
13
$
6,525,523
22
$
3,656,875
16
14
-
6
-
$
6,525,537
22
$
3,656,881
16
6(29)
$
10.15
$
5.98
6(29)
$
9.90
$
5.91

4000
Operating revenue
5000
Operating costs
5950
Gross profit
Operating expenses
6100
Selling expenses
6200
General and administrative expenses
6300
Research and development expenses
6450
Expected credit losses
6000
Total operating expenses
6900
Operating income
Non-operating income and expenses
7100
Interest income
7010
Other income
7020
Other gains and losses
7050
Finance costs
7060
Share of loss of associates and joint
ventures accounted for under equity
method
7000
Total non-operating income and
expenses
7900
Profit before income tax, net
7950
Income tax expense
8200
Net income for the period
Other comprehensive income, net
Components of other comprehensive
income (loss) that will not be
reclassified to profit or loss
8316
Unrealised (loss)income from
investments in equity instruments
measured at fair value through other
comprehensive income
Components of other comprehensive
income (loss) that will be reclassified
to profit or loss
8361
Financial statements translation
differences of foreign operations
8300
Other comprehensive income, net
8500
Total comprehensive income for the
period
Net income attributable to:
8610
Equity holders of the parent
company
8620
Non-controlling interest
Net income for the period
Comprehensive income attributable to:
8710
Equity holders of the parent
company
8720
Non-controlling interest
Total comprehensive income for
the period
Earnings per share (in dollars)
9750
Basic earnings per share
9850
Diluted earnings per share

Items	Three months ended March 31 2022 2021 Notes AMOUNT % AMOUNT % 6(21) and 7 `$` `29,756,311` `100` `$` `23,340,746` `100` 6(6) and 7 `(` `14,226,630 ) (` `48) (` `12,887,943) (` `55 )` `15,529,681` `52` `10,452,803` `45` 6(26)(27) and 7 `(` `1,235,936 ) (` `4) (` `1,043,558) (` `4 )` `(` `1,033,549 ) (` `3) (` `662,723) (` `3 )` `(` `7,950,943 ) (` `27) (` `5,750,185) (` `25 )` 12(2) `(` `7,598 )` `- (` `3,550)` `-` `(` `10,228,026 ) (` `34) (` `7,460,016) (` `32 )` `5,301,655` `18` `2,992,787` `13` 6(22) `74,343` `-` `102,799` `1` 6(23) `74,684` `-` `57,272` `-` 6(24) `(` `19,827 )` `-` `56,507` `-` 6(25) `(` `22,467 )` `- (` `25,585)` `-` 6(7) `(` `5,704 )` `- (` `931)` `-` `101,029` `-` `190,062` `1` `5,402,684` `18` `3,182,849` `14` 6(28) `(` `216,402 ) (` `1) (` `128,078) (` `1 )` `$` `5,186,282` `17` `$` `3,054,771` `13` 6(20) `( $` `342,438 ) (` `1) $` `572,921` `3` `1,681,693` `6` `29,189` `-` `$` `1,339,255` `5` `$` `602,110` `3` `$` `6,525,537` `22` `$` `3,656,881` `16` `$` `5,186,268` `17` `$` `3,054,765` `13` `14` `-` `6` `-` `$` `5,186,282` `17` `$` `3,054,771` `13` `$` `6,525,523` `22` `$` `3,656,875` `16` `14` `-` `6` `-` `$` `6,525,537` `22` `$` `3,656,881` `16` 6(29) `$` `10.15` `$` `5.98` 6(29) `$` `9.90` `$` `5.91`
4000 Operating revenue 5000 Operating costs 5950 Gross profit Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit losses 6000 Total operating expenses 6900 Operating income Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of loss of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax, net 7950 Income tax expense 8200 Net income for the period Other comprehensive income, net Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8316 Unrealised (loss)income from investments in equity instruments measured at fair value through other comprehensive income Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8300 Other comprehensive income, net 8500 Total comprehensive income for the period Net income attributable to: 8610 Equity holders of the parent company 8620 Non-controlling interest Net income for the period Comprehensive income attributable to: 8710 Equity holders of the parent company 8720 Non-controlling interest Total comprehensive income for the period Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share

The accompanying notes are an integral part of these consolidated financial statements.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(The statements of changes in equity are reviewed, not audited)

Notes			Equity	attributableto own	s of the parentco	mpany	mpany
	Common shares	Capital surplus		RetainedEarnings		Otherequityinterest		Total
			Legal reserve	Special reserve	Undistributed earnings	Financial statements translation differences of foreign operations	Unrealised (loss)income from financial assets measured at fair value through other comprehensive income
6(20) 6(20) 6(17)(18)	`$ 5,106,849` `-` `-` `-` `-` `$ 5,106,849` `$ 5,106,849` `-` `-` `-` `21,787` `-` `$ 5,128,636`	`$ 2,122,008` `-` `-` `-` `-` `$ 2,122,008` `$ 1,101,079` `-` `-` `-` `969,551` `-` `$ 2,070,630`	`$ 5,577,083` `-` `-` `-` `-` `$ 5,577,083` `$ 5,577,083` `-` `-` `-` `-` `-` `$ 5,577,083`	`$` `217,036` `-` `-` `-` `-` `$` `217,036` `$ 1,556,049` `-` `-` `-` `-` `-` `$ 1,556,049`	`$ 17,992,154` `3,054,765` `-` `3,054,765` `-` `$ 21,046,919` `$ 27,377,681` `5,186,268` `-` `5,186,268` `-` `-` `$ 32,563,949`	`($ 2,940,958 )` `-` `29,189` `29,189` `-` `($ 2,911,769 )` `($ 4,156,871 )` `-` `1,681,693` `1,681,693` `-` `-` `($ 2,475,178 )`	`$ 1,384,909` `-` `572,921` `572,921` `-` `$ 1,957,830` `$ 2,380,781` `-` `(` `342,438 )` `(` `342,438 )` `-` `-` `$ 2,038,343`	`$ 29,459,081` `3,054,765` `602,110` `3,656,875` `-` `$ 33,115,956` `$ 38,942,651` `5,186,268` `1,339,255` `6,525,523` `991,338` `-` `$ 46,459,512`	`$` `9,665` `6` `-` `6` `(` `44 )` `$` `9,627` `$` `9,673` `14` `-` `14` `-` `(` `46 )` `$` `9,641`	`$ 29,468,746` `3,054,771` `602,110` `3,656,881` `(` `44 )` `$ 33,125,583` `$ 38,952,324` `5,186,282` `1,339,255` `6,525,537` `991,338` `(` `46 )` `$ 46,469,153`

The accompanying notes are an integral part of these consolidated financial statements.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PREIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(The statements of cash flows are reviewed, not audited)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation

Amortization

Expected credit losses

Interest expense

Interest income

Dividend Income

Losses(gains) on financial assets at fair value
through profit or loss

Share of loss of associates and joint ventures
accounted for under equity method

Losses(gains) on disposal of property, plant and
equipment

Gains arising from lease modifications

Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or
loss - current
Accounts receivable, net
Accounts receivable, net - related parties
Other receivables
Inventories
Prepayments
Changes in operating liabilities
Contract liabilities - current
Notes payable
Accounts payable
Accounts payable - related parties
Other payables
Other payables - related parties
Other current liabilities
Provisions - non-current
Accrued pension obligations Three-month periods ended March 31
Notes
2022
2021
$
5,402,684 $
3,182,849
6(26)
274,928
229,570
6(11)(26)
386,111
284,821
12(2)
7,598
3,550
6(25)
22,467
25,585
6(22)
(
74,343 ) (
102,799 )
6(23)
(
18,120 ) (
13,874 )
6(2)(24)
82,518 (
140,421 )
6(7)
5,704
931
6(24)
2,354 (
164 )
6(24)
(
24 )
-
638,275
541,554
218,657 (
297,045 )
(
100,354 ) (
209,244 )
(
6,604 ) (
106,566 )
(
917,442 ) (
1,162,338 )
256,900
109,367
154,960
26,955
- (
25,376 )
250,256
560,315
53,706
39,944
1,982,162 (
288,397 )
11,382
2,333
527,321 (
55,664 )
84,082
-
570 (
1,157 )

(Continued)

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PREIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(The statements of cash flows are reviewed, not audited)

Cash inflow generated from operations
Interest received
Dividends received
Interest paid
Income tax paid
Net cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortised cost
Proceeds from disposal of financial assets at
amortised cost
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipment
Acquisition of intangible assets

Decrease in refundable deposits
Increase in other non-current assets
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings

Decrease in short-term borrowings

Increase in long-term borrowing

Repayment of principal portion of lease liabilities

Decrease in guarantee deposits
Net cash flows (used in) from financing
activities
Effect of exchange rate
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Three-month periods ended March 31
Notes
2022
2021
$
9,245,748 $
2,604,729
49,049
135,667
18,120
13,874
(
26,198 ) (
23,971 )
(
21,752 ) (
17,971 )
9,264,967
2,712,328
(
22,731,336 ) (
10,573,875 )
20,262,222
8,398,210
6(30)
(
664,542 ) (
733,002 )
-
200
6(30)
(
761,390 ) (
602,113 )
21,916
20,240
(
1,758 ) (
723 )
(
3,874,888 ) (
3,491,063 )
6(31)
39,532,613
29,964,010
6(31)
(
42,745,967 ) (
28,740,700 )
6(31)
221,900
-
6(31)
(
20,437 ) (
26,206 )
(
204 ) (
14 )
(
3,012,095 )
1,197,090
55,314
5,414
2,433,298
423,769
7,197,351
7,296,360
$
9,630,649 $
7,720,129

The accompanying notes are an integral part of these consolidated financial statements.

~9~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan Dollars, except as otherwise indicated) (REVIEWED, NOT AUDITED)

1. HISTORY AND ORGANISATION

Realtek Semiconductor Corporation (the “Company”) was incorporated as a company limited by shares on October 21, 1987 and commenced commercial operations in March 1988. The Company was based in Hsinchu Science-Based Industrial Park since October 28, 1989. The Company and its subsidiaries (collectively referred herein as the “Group”) are engaged in the research, development, design, testing, and sales of ICs and application softwares for these products.
THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND PROCEDURES FOR AUTHORISATION
These consolidated financial statements were reported to the Board of Directors on April 22, 2022.
APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 3, ‘Reference to the conceptual framework’ January 1, 2022 Amendments to IAS 16, ‘Property, plant and equipment: proceeds before January 1, 2022 intended use’ Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract’ January 1, 2022 Annual improvements to IFRS Standards 2018–2020 January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group

None.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

~10~

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28,‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17,‘Insurance contracts’ Amendments to IFRS 17, 'Insurance contracts' Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9– comparative information' Amendments to IAS 1,‘Classification of liabilities as current or non-current’ Amendments to IAS 1,‘Disclosure of accounting policies’ Amendments to IAS 8,‘Definition of accounting estimates’ Amendments to IAS 12,‘Deferred tax related to assets and liabilities arising from a single transaction’	To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

New Standards,Interpretations and Amendments

Effective date by
International Accounting
Standards Board

Amendments to IFRS 10 and IAS 28,‘Sale or contribution of assets
between an investor and its associate or joint venture’
IFRS 17,‘Insurance contracts’
Amendments to IFRS 17, 'Insurance contracts'
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9–
comparative information'
Amendments to IAS 1,‘Classification of liabilities as current
or non-current’
Amendments to IAS 1,‘Disclosure of accounting policies’
Amendments to IAS 8,‘Definition of accounting estimates’
Amendments to IAS 12,‘Deferred tax related to assets and
liabilities arising from a single transaction’

To be determined by
International Accounting
Standards Board
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2021, except for the compliance statement, basis of preparations, basis of consolidation and interim financial statements applied as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim financial reporting’ as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2021.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process

~11~

of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

Basis for preparation of consolidated financial statements is consistent with the 2021 consolidated financial statements.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Ownership (%)	Description Note 3 Note 3
			March 31, 2022	December 31,2021	March 31,2021
Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation	Leading Enterprises Limited Amber Universal Inc. Realtek Singapore Private Limited Bluocean Inc. Talent Eagle Enterprise Inc. Realtek Investment Singapore Private Limited Realsun Investment Co., Ltd. Hung-wei Venture Capital Co., Ltd.	Investment holdings 〃 ICs manufacturing, design, research, development, sales, and marketing Investment holdings 〃〃〃〃	100% 100% 100% 100% 100% 100% 100% 100%	100% 100% 100% 100% 100% 100% 100% 100%	100% 100% 100% 100% 100% 100% 100% 100%

~12~

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Ownership (%)	Description Note 3 Note 3 Note 3 Note 1 and 4 Note 3 Note 3 Note 3
			March 31, 2022	December 31,2021	March 31,2021
Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Leading Enterprises Limited Leading Enterprises Limited Amber Universal Inc.	Realking Investments Co., Ltd. Realsun Technology Corporation Bobitag Inc. AICONNX Technology Corporation Realtek Semiconductor (Japan) Corp. Circon Universal Inc. Realtek Semiconductor (Hong Kong) Limited	Investment holdings ICs manufacturing, design, research, development, sales, and marketing Manufacture and installation of computer equipment and wholesale, retail and related service of electronic materials and information / software ICs manufacturing, design, research, development, sales, and marketing Technical support and information service. Investment holdings Information services and technical support	100% 100% 100% 100% 100% 100% 100%	100% 100% 67% 100% 100% 100% 100%	100% 100% 67% - 100% 100% 100%

~13~

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Ownership (%)	Description Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3
			March 31, 2022	December 31,2021	March 31,2021
Amber Universal Inc. Empsonic Enterprises Inc. Talent Eagle Enterprise Inc. Realtek Singapore Private Limited Realtek Singapore Private Limited Realtek Singapore Private Limited Realtek Singapore Private Limited Realtek Singapore Private Limited Realtek Singapore Private Limited	Realtek Semiconductor (Shen Zhen) Corp. Realsil Microelectronics Corp. Ubilinx Technology Inc. Cortina Access Inc. Cortina Systems Taiwan Limited Cortina Network Systems Shanghai Co., Ltd. Empsonic Enterprises Inc. Realtek Viet Nam Co., Ltd. RayMX Microelectronics Corp.	R&D and technical support 〃〃〃〃〃 Investment holdings R&D and technical support ICs manufacturing, design, research, development, sales, and marketing	100% 100% 100% 100% 100% 100% 100% 100% 19%	100% 100% 100% 100% 100% 100% 100% 100% 19%	100% 100% 100% 100% 100% 100% 100% 100% 19%

~14~

			Ownership (%)	Ownership (%)	Ownership (%)
Name of	Name of	Main business	March 31,	December		March
investor	subsidiary	activities	2022	31,2021	31,2021		Description
Realsil	RayMX	ICs	81%	81%		81%	Note 3
Microelectronics	Microelectronics	manufacturing,
Corp.	Corp.	design, research,
		development,
		sales, and
		marketing
Realsil	Suzhou PanKore	〃	80%	80%		80%	Note 3
Microelectronics	Integrated
Corp.	Circuit
	Technology Co.
	Ltd.
Realtek	Suzhou PanKore	〃	20%	20%		20%	Note 3
Semiconductor	Integrated
(Shen Zhen)	Circuit
Corp.	Technology Co.
	Ltd.
Bluocean Inc.	Realtek	R&D and	100%	100%		100%	Note 3
	Semiconductor	technical support
	(Malaysia) Sdn.
	Bhd.
Bluocean Inc.	Realtek Korea	〃	100%	-		-	Note 2
	Inc.						and 4
Note 1: AICONNX Technology Corporation was incorporated on December 20,						2021.
Note 2: Realtek Korea Inc. was established on January			17, 2022.
Note 3: The financial statements of		the entity as at and for the three-month periods ended March
31, 2022	and 2021 were not reviewed by the		independent	auditors as	the entity		did not
meet the	definition of a significant subsidiary.

Note 4: The financial statements of the entity as at and for the three-month periods ended March 31, 2022 was not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

~15~

(4) Employee benefits

Pensions - Defined benefit plan

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(5) Income tax

A. The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognizes the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

There have been no significant changes as at March 31, 2022. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2021.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	March 31,2022 844 $ 9,399,850 229,955 9,630,649 $	December 31,2021 910 $ 7,113,048 83,393 7,197,351 $	March 31,2021
			992 $ 7,604,347 114,790
			7,720,129 $

The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

(2) Financial assets at fair value through profit or loss

Financial assets at fair value through	profit or loss
Items Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Beneficiary certificates	March 31,2022 272,899 $ 958,955 1,231,854 $	December 31,2021 358,892 $ 1,593,755 1,952,647 $	March 31,2021
			434,669 $ 244,856
			679,525 $

~16~

A. Amounts recognized in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

Amounts recognized in profit or loss in relation to financial assets at fair loss are listed below:	value through profit
For the three-month period ended March 31,2022 Financial assets mandatorily measured at fair value through profit or loss Equity instruments 85,991) ($ Beneficiary certificates 3,473 82,518) ($	For the three-month period ended March 31,2021
	136,054 $ 4,367
	140,421 $

B. The Group has no financial assets at fair value through profit or loss pledged to others.

(3) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments Listed stocks Emerging stocks Unlisted stocks	March 31,2022 817,406 $ 56,886 2,549,666 3,423,958 $	December 31,2021 788,460 $ 36,046 2,820,372 3,644,878 $	March 31,2021
			747,821 $ 23,520 2,422,152
			3,193,493 $

A. The Group has elected to classify equity instruments investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $3,423,958, $3,644,878, and $3,193,493 on March 31, 2022, December 31, 2021, and March 31, 2021, respectively.
B. Amounts recognized in other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

For the three-month period ended March 31,2022 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income 342,438) ($	For the three-month period ended March 31,2021 572,921 $

C. The Group has no financial assets at fair value through other comprehensive income pledged to others.

~17~

(4) Financial assets at amortized cost

Financial assets at amortized cost
Items Current items: Time deposits Non-current items: Time deposits	March 31,2022 47,730,479 $ 80,381 $	December 31,2021 43,740,876 $ 80,101 $	March 31,2021
			37,544,992 $
			79,821 $

A. Details of the Group’s financial assets at amortized cost pledged to others as collateral are provided in Note 8.
B. The counterparties that the Group’s investing in its time deposits were financial institution who have good credit quality, so it expects that the probability of counterparty default is remote.

(5) Accounts receivable

Accountsreceivable
		March 31,2022	December 31,2021			March 31,2021
Accounts receivable	$	12,658,512	$	12,877,169	$	11,214,782
Accounts receivable - related parties		3,310,900		3,210,546		3,039,935
Less: Allowance for bad debts	(	106,308)	(	98,710)	(	98,910)
	$	15,863,104	$	15,989,005	$	14,155,807
A. The aging analysis of accounts receivable is as follows:
		March 31,2022	December 31,2021			March 31,2021
Not past due	$	15,410,743	$	15,874,298	$	14,002,420
Up to 30 days		550,333		210,889		251,793
31 to 90 days		-		2,067		70
Over 90 days		8,336		461		434
	$	15,969,412	$	16,087,715	$	14,254,717

The above aging analysis is based on past due date.

B. As at March 31, 2022, December 31, 2021 and March 31, 2021, accounts receivable were all from contracts with customers. And as at January 1, 2021, the balance of receivables from contracts with customers amounted to $13,748,428.
C. The Group has no accounts receivable pledged to others.
D. Information relating to credit risk of accounts receivable is provided in Note 12(2).

(6) Inventories

Inventories
Raw materials Work in process Finished goods		March 31,2022
	Allowance for obsolescence and Cost market value decline 1,637,257 $ 7,324) ($ 9,842,823 1,065,670) ( 7,677,156 618,088) ( 19,157,236 $ 1,691,082) ($		Book value
			1,629,933 $ 8,777,153 7,059,068
			17,466,154 $

~18~

Raw materials Work in process Finished goods Raw materials Work in process Finished goods		December 31,2021
	Allowance for obsolescence and Cost market value decline 1,181,719 $ 7,322) ($ 8,666,087 623,852) ( 7,815,457 483,377) ( 17,663,263 $ 1,114,551) ($ March 31,2021		Book value
			1,174,397 $ 8,042,235 7,332,080
			16,548,712 $

	Allowance for obsolescence and Cost market value decline 1,475,693 $ 22,056) ($ 7,189,035 682,915) ( 2,370,621 545,063) ( 11,035,349 $ 1,250,034) ($		Book value
			1,453,637 $ 6,506,120 1,825,558
			9,785,315 $

Operating costs incurred on inventories for the three-month periods ended March 31, 2022 and 2021 were as follows:

Operating costs incurred on inventoriesfor the three-month periods ended March 31, 2022 and 2021 were as follows:	ch 31, 2022 and 2021	ch 31, 2022 and 2021
Investments accounted for under equity method For the three-month period ended For the three-month period ended March 31,2022 March 31,2021 Cost of inventories sold and others 13,644,224 $ 12,767,254 $ Loss on decline in market value, obsolete and slow-moving inventory 561,356 100,219 Loss on scrap inventory 21,050 20,470 14,226,630 $ 12,887,943 $ March 31,2022 December 31,2021 March 31,2021 Technology Partner V Venture Capital Corporation - $ - $ 255 $ Estinet Technologies Incorporation 4,724 5,081 7,975 Innorich Venture Capital Corp. 139,689 142,619 147,692 Starmems Semiconductor Corp. 41,277 43,677 - 185,690 $ 191,377 $ 155,922 $	For the three-month period ended March 31,2021
	$	12,767,254 100,219 20,470
	$	12,887,943
		March 31,2021
Technology Partner V Venture Capital Corporation Estinet Technologies Incorporation Innorich Venture Capital Corp. Starmems Semiconductor Corp.
		255 $ 7,975 147,692 -
		155,922 $

(7) Investments accounted for under equity method

A. The loss on investments accounted for under equity method amounted to $5,704 and $931 for the three-month periods ended March 31, 2022 and 2021, respectively.
B. Technology Partner V Venture Capital Corporation was dissolved on September 21, 2020 and the process of liquidation was completed as at July 20, 2021.
C. Starmems Semiconductor Corp. was incorporated in April 2021. The Group’s investment in the investee were amounted to $45,000.

~19~

(8) Property, plant and equipment

At January 1, 2022
Cost
Accumulated
depreciation and
impairment
2022
At January 1
Additions
Disposals
Reclassifications
Depreciation
Net exchange difference
At March 31
At March 31, 2022
Cost
Accumulated
depreciation and
impairment
At January 1, 2021
Cost
Accumulated
depreciation and
impairment
2021
At January 1
Additions
Disposals
Reclassifications
Depreciation
Net exchange difference
At March 31
At March 31, 2021
Cost
Accumulated
depreciation and
impairment

Land
Buildings
Machinery
Test equipment
Office equipment
Others
Total
489,370
$ 3,466,696
$ 4,185,792
$ 3,926,851
$ 492,603
$ 2,477,232
$ 15,038,544
$ -
1,517,259)
(
3,546,371)
(
2,638,725)
(
255,610)
(
777,641)
(
8,735,606)
(
489,370
$ 1,949,437
$ 639,421
$ 1,288,126
$ 236,993
$ 1,699,591
$ 6,302,938
$ 489,370
$ 1,949,437
$ 639,421
$ 1,288,126
$ 236,993
$ 1,699,591
$ 6,302,938
$ -
-
6,157
48,491
344
429,464
484,456
-
3)
(
-
2,344)
(
7)
(
-
2,354)
(
-
-
-
4,264
-
4,264)
(
-
-
33,383)
(
38,803)
(
135,372)
(
14,987)
(
25,751)
(
248,296)
(
-
16,312
292)
(
3,776
374
2,078)
(
18,092
489,370
$ 1,932,363
$ 606,483
$ 1,206,941
$ 222,717
$ 2,096,962
$ 6,554,836
$ 489,370
$ 3,492,177
$ 4,192,737
$ 3,968,202
$ 494,604
$ 2,904,899
$ 15,541,989
$ -
1,559,814)
(
3,586,254)
(
2,761,261)
(
271,887)
(
807,937)
(
8,987,153)
(
489,370
$ 1,932,363
$ 606,483
$ 1,206,941
$ 222,717
$ 2,096,962
$ 6,554,836
$ Land
Buildings
Machinery
Test equipment
Office equipment
Others
Total
387,280
$ 3,414,624
$ 3,838,068
$ 3,290,307
$ 333,113
$ 1,111,004
$ 12,374,396
$ -
1,413,842)
(
3,429,011)
(
2,195,086)
(
207,520)
(
680,405)
(
7,925,864)
(
387,280
$ 2,000,782
$ 409,057
$ 1,095,221
$ 125,593
$ 430,599
$ 4,448,532
$ 387,280
$ 2,000,782
$ 409,057
$ 1,095,221
$ 125,593
$ 430,599
$ 4,448,532
$ -
3,003
9,744
52,799
39,620
682,906
788,072
-
-
-
-
36)
(
-
36)
(
102,090
42,767
-
-
-
144,857)
(
-
-
27,902)
(
25,887)
(
114,640)
(
9,696)
(
22,477)
(
200,602)
(
-
454
1,144)
(
1,990
35
156)
(
1,179
489,370
$ 2,019,104
$ 391,770
$ 1,035,370
$ 155,516
$ 946,015
$ 5,037,145
$ 489,370
$ 3,459,006
$ 3,846,447
$ 3,343,232
$ 372,251
$ 1,648,633
$ 13,158,939
$ -
1,439,902)
(
3,454,677)
(
2,307,862)
(
216,735)
(
702,618)
(
8,121,794)
(
489,370
$ 2,019,104
$ 391,770
$ 1,035,370
$ 155,516
$ 946,015
$ 5,037,145
$

A. There was no capitalization of borrowing costs attributable to the property, plant and equipment.

B. The Group has no property, plant and equipment pledged to others.

~20~

`－` (9) Leasing arrangements lessee

A. The Group leases various assets including land, buildings and transportation equipment. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. The carrying amount of right-of-use assets and the depreciation are as follows:

	Carryingamount
March 31,2022 1,364,730 $ 227,345 1,495 1,593,570 $	December 31,2021 1,370,790 $ 215,177 1,943 1,587,910 $ Depreciation	March 31,2021
		1,391,373 $ 228,018 3,289
		1,622,680 $
For the three-month period ended March 31,2022 6,846 $ 18,359 448 25,653 $

C. For the three-month periods ended March 31, 2022 and 2021, the additions to right-of-use assets were $25,979 and $3,588, respectively.
D. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities	For the three-month period ended March 31,2022 7,027 $	For the three-month period ended March 31,2021
		7,048 $

E. For the three-month periods ended March 31, 2022 and 2021, the Group’s total cash outflow for leases were $27,464 and $33,254, respectively.

~21~

(10) Investment property

Investment property
			Buildings
		2022			2021
At January 1
Cost	$		81,152	$	81,499
Accumulated depreciation and impairment	(		39,511)	(	35,809)
	$		41,641	$	45,690
At January 1	$		41,641	$	45,690
Depreciation	(		979)	(	973)
Net exchange difference			1,623	(	73)
At March 31	$		42,285	$	44,644
At March 31
Cost	$		84,360	$	81,356
Accumulated depreciation and impairment	(		42,075)	(	36,712)
	$		42,285	$	44,644

Cost Accumulated depreciation and impairment	84,360 $ $ 42,075) ( ( 42,285 $ $	84,360 $ $ 42,075) ( ( 42,285 $ $	84,360 $ $ 42,075) ( ( 42,285 $ $	81,356 36,712 44,644
A.Rental income from the lease of the investment	property and direct operating			expenses arising
from the investment property are shown below:
	For the three-month		For the three-month
		period ended		period ended
		March 31,2022		March 31,2021
Rental income from the lease of the investment
property	$	567	$	562
Operating expenses arising from the
investment property that generated rental
income during the period	$	979	$	973

B. The Group’s investment property is located in Mainland China. The fair value is based on valuation information from Information Centre of Real Estate in local governments in Mainland China and is adjusted and classified as level 3 accordingly. As at March 31, 2022, December 31, 2021 and March 31, 2021, the fair value was $135,598, $130,525, and $131,609, respectively.

~22~

(11) Intangible assets

Intangible assets
			Computer			Intellectual
			software			property			Goodwill			Others			Total
At January 1, 2022
Cost		$	5,639,381		$	5,805,930		$	639,561		$	281,520		$	12,366,392
Accumulated amortisation
and impairment	(		4,737,026)	(		4,517,428)	(		639,561)	(		240,683)	(		10,134,698)
		$	902,355		$	1,288,502		$	-		$	40,837		$	2,231,694
2022
At January 1		$	902,355		$	1,288,502		$	-		$	40,837		$	2,231,694
Additions			1,294,985			14,548			-			12,000			1,321,533
Amortisation	(		224,355)	(		156,608)			-	(		5,148)	(		386,111)
Net exchange difference			471			1,859			-			746			3,076
At March 31		$	1,973,456		$	1,148,301		$	-		$	48,435		$	3,170,192
At March 31, 2022
Cost		$	6,935,285		$	5,828,061		$	639,561		$	302,478		$	13,705,385
Accumulated amortisation
and impairment	(		4,961,829)	(		4,679,760)	(		639,561)	(		254,043)	(		10,535,193)
		$	1,973,456		$	1,148,301		$	-		$	48,435		$	3,170,192
			Computer			Intellectual
			software			property			Goodwill			Others			Total
At January 1, 2021
Cost	$		5,088,065	$		4,900,421	$		639,561	$		275,206	$		10,903,253
Accumulated amortisation
and impairment	(		3,987,796)	(		3,981,733)	(		639,561)	(		226,839)	(		8,835,929)
	$		1,100,269	$		918,688	$		-	$		48,367	$		2,067,324
2021
At January 1	$		1,100,269	$		918,688	$		-	$		48,367	$		2,067,324
Additions			106,723			118,509			-			-			225,232
Amortisation	(		176,594)	(		103,010)			-	(		5,217)	(		284,821)
Net exchange difference	(		5)	(		3,670)			-			12	(		3,663)
At March 31	$		1,030,393	$		930,517	$		-	$		43,162	$		2,004,072
At March 31, 2021
Cost	$		5,194,790	$		5,018,591	$		639,561	$		275,427	$		11,128,369
Accumulated amortisation
and impairment	(		4,164,397)	(		4,088,074)	(		639,561)	(		232,265)	(		9,124,297)
	$		1,030,393	$		930,517	$		-	$		43,162	$		2,004,072

Details of amortization on intangible assets are as follows:

Operating costs Operating expenses	For the three-month period ended March 31,2022 360 $ 385,751 386,111 $	For the three-month period ended March 31,2021
		485 $ 284,336
		284,821 $

~23~

(12) Short-term borrowings

(12)	Short-term borrowings
(13)	Interest expense of bank borrowings recognized in profit or loss amounted to $15,440 and $18,537 for the three-month periods ended March 31, 2022 and 2021, respectively. Other payables Type of borrowings March 31,2022 Interest rate range Collateral Bank borrowings Unsecured borrowings 10,128,746 $ 0.10%~0.80% None Type of borrowings December 31,2021 Interest rate range Collateral Bank borrowings Unsecured borrowings 13,342,100 $ 0.42%~0.57% None Type of borrowings March 31,2021 Interest rate range Collateral Bank borrowings Unsecured borrowings 12,680,000 $ 0.54%~0.56% None	Collateral
		None Collateral
		None Collateral

(13)	for the three-month periods ended March 31, 2022 and 2021, respectively. Other payables	021, respectively.	021, respectively.
(14)	Long-term borrowings March 31,2022 December 31,2021 Accrued salaries and bonus 9,937,785 $ 9,641,868 $ Payable for employees' compensation 11,633,583 11,117,412 Other accrued expenses 2,037,622 1,927,958 Payables on equipment 103,710 283,796 Payables on software and intellectual property 2,006,073 1,445,930 Others 293,564 228,177 26,012,337 $ 24,645,141 $ Type of borrowings Borrowing period repayment term Interest rate range Loan for Accelerated Investment by Domestic Corporations (Note) 2021/11/8 ~2026/12/15 Repayable in instalment over the agreed period 0.28%`～1`.05% Type of borrowings Borrowing period repayment term Interest rate range Loan for Accelerated Investment by Domestic Corporations (Note) 2021/11/8 ~2026/12/15 Repayable in instalment over the agreed period 0.3%`～`0.8%	December 31,2021		March 31,2021 3,894,650 $ 7,038,487 2,175,444 114,029 775,710 57,633 14,055,953 $ Collateral March 31,2022 None 1,226,147 $ Collateral December 31,2021 None 1,002,799 $
		$	9,641,868 11,117,412 1,927,958 283,796 1,445,930 228,177
		$	24,645,141
			Interest rate range 0.28%`～1`.05% Interest rate range 0.3%`～`0.8%
					1,226,147 $
					December 31,2021
					1,002,799 $

There were no such transactions as at March 31, 2021.

Note: The Ministry of Economic Affairs implemented the “Action Plan for Accelerated Investment by Domestic Corporations” on July 1, 2019. An entity can apply for a subsidized loan for an eligible investment project from financial institutions at a preferential interest rate. The Group is qualified for the loan as approved by the Ministry of Economic Affairs and entered into a loan contract with a financial institution with a credit period of 5 years. The loan is used for construction of plant and related facilities.

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(15) Pension

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.
(b) The pension costs under the defined benefit pension plans of the Group for the three-month periods ended March 31, 2022 and 2021 were $504 and $343, respectively.
(c) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2022 amount to $6,000.
B. (a) Effective July 1, 2005, the Company and domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(b) The Company’s mainland China subsidiaries, Realsil Microelectronics Corp., Realtek Semiconductor (Shen Zhen) Corp., Cortina Network Systems Shanghai Co., Ltd., RayMX Microelectronics Corp. and Suzhou PanKore Integrated Circuit Technology Co. Ltd. have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. Monthly contributions to an independent fund are administered by the government. Other than the monthly contributions, the Group has no further obligations.
(c) The pension costs under the defined contribution pension plans of the Group for the threemonth periods ended March 31, 2022 and 2021 were $94,496 and $80,792, respectively.

~25~

(16) Provision

Provision
At January 1 Increase in provision Effect of exchange rate At March 31	2022 989,475 $ 84,082 35,089 1,108,646 $	2021
		1,018,706 $ - 821
		1,019,527 $

As at March 31, 2022, provisions were estimated for potential infringement litigations.

(17) Share capital

A. As at March 31, 2022, the Company’s authority capital was $8,900,000, consisting of 890 million shares of common stock (including 80 million shares reserved for employee stock options), and the paid-in capital was $5,128,636 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number (thousands of shares) of the Company's common shares outstanding are as follows:

outstanding are as follows:
At January 1 Employees’compensation transferred to common shares At March 31	2022 510,684 2,179 512,863	2021
		510,684 -
		510,684

B. On March 18, 2022, the Company’s Board of Directors resolved to distribute employees’ compensation in the form of stocks amounting to $991,338. The Company issued 2,179 thousand shares based on the closing price of the Company’s share at the previous day of the Board meeting resolution at 455 NT dollar, which was approved by the competent authority, and the record date of issuance of new shares was March 30, 2022. The registration for the distribution of employees’ compensation was completed on April 13, 2022.
C. On January 24, 2002, the Company increased its new common stock and sold its old common stock by issuing 13,924 thousand units of GDRs for cash. Each GDR unit represents 4 common stocks, so the total common stocks issued were 55,694 thousand shares. The Company’s GDRs are traded in the Luxembourg Stock Exchange. As at March 31, 2022, the outstanding GDRs were 440 thousand units, or 1,760 thousand shares of common stock, representing 0.34% of the Company’s total common stocks.

(18) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated

~26~

deficit unless the legal reserve is insufficient.

	2022				Total 1,101,079 969,551 2,070,630
Sharepremium 1,039,006 $ 969,551 2,008,557 $	Change in associates equitymethod 61,261 $ - 61,261 $ 2021	Others 812 $ - 812 $
		$		$
		$		$

Change in associates accounted for under Sharepremium equitymethod 2,060,376 $ 61,035 $			Others 597 $		Total
					2,122,008 $

(19) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve, if legal reserve has accumulated to an amount equal to the paid-in capital, then legal reserve is not required to be set aside any more. After that, special reserve shall be set aside or reversed in accordance with the related laws or the regulations made by the Competent Authority. The remainder, if any, along with prior year’s accumulated undistributed earnings shall be proposed by the Board of Directors. However, the appropriation of earnings shall be resolved by the shareholders if earnings are distributed by issuing new shares, or the appropriation of earnings shall be resolved by the Board of Directors, if earnings are distributed in the form of cash. The Company should consider factors affecting finance, business and operations to appropriate distributable earnings for the period, and appropriate all or partial reserve in accordance with regulations of the Competent Authority. The Company’s dividend policy takes into consideration the Company’s future expansion plans and future cash flows. In accordance with the Company’s dividend policy, cash dividends shall account for at least 10% of the total dividends distributed.

In accordance with Company Act Article 240, Item 5 and Article 241, Item 2, the resolution, for all or partial of distributable dividends, legal reserve and capital surplus are distributed in the form of cash, will be adopted by a majority vote at a meeting of the Board of Directors attended by at least two-thirds of the total number of directors, and will be reported to the shareholders.

B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to

~27~

their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
D. The appropriation of 2021 earnings had been proposed by the Board of Directors’ meeting on April 22, 2022, and the appropriation of 2020 earnings had been resolved at the stockholders’ meeting on August 9, 2021. Details are summarized below:

Dividends per share Amount (in dollars) 1,685,276 $ - $ 220,040 - 12,821,591 25.00 14,726,907 $ 25.00 $ 2021	2020	2020
Amount 1,685,276 $ 220,040 12,821,591 14,726,907 $	Amount - $ 1,339,013 6,128,219 7,467,232 $	Dividends per share (in dollars)
		- $ - 12.00
		12.00 $

E. On April 22, 2022, the Board of Directors of the Company proposed to distribute cash dividends from capital surplus to shareholders in the amount of $1,025,727 ($2 per share). The aforementioned cash dividends of distribution of 2021 earnings and cash dividends from capital surplus have been resolved by the Board of Directors on April 22, 2022, others are yet to be resolved by the shareholders.
F. On April 23, 2021, the Board of Directors of the Company proposed to distribute $1,021,370 by cash ($2 per share) from capital surplus.

(20) Other equity items

Other equity items
				2022
		Unrealised		Currency
	income(loss)on valuation		translation difference			Total
At January 1	$	2,380,781	($	4,156,871)	($	1,776,090)
Revaluation:
–Group	(	342,438)		-	(	342,438)
Currency translation
differences:
–Group		-		1,681,693		1,681,693
At March 31	$	2,038,343	($	2,475,178)	($	436,835)

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(21)

Operating revenue
Unrealised
Currency
income(loss)on valuation
translation difference
Total
At January 1
1,384,909
$ 2,940,958)
($ 1,556,049)
($ Revaluation:
–Group
572,921
-
572,921
Currency translation
differences:
–Group
-
29,189
29,189
At March 31
1,957,830
$ 2,911,769)
($ 953,939)
($ 2021
For the three-month
period ended
For the three-month
period ended
March 31,2022
March 31,2021
Revenue from contracts with customers
29,756,311
$ 23,340,746
$

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of	goods	and services at a point in time	and services at a point in time	and services at a point in time	and services at a point in time	in the
following major product lines:
		Integrated
For the three-month period ended March 31, 2022	circuitproducts			Others		Total
Revenue from external customer contracts	$	29,713,738	$	42,573	$	29,756,311
Timing of revenue recognition
At a point in time	$	29,713,738	$	42,573	$	29,756,311
		Integrated
For the three-month period ended March 31, 2021	circuitproducts			Others		Total
Revenue from external customer contracts	$	23,307,694	$	33,052	$	23,340,746
Timing of revenue recognition
At a point in time	$	23,307,694	$	33,052	$	23,340,746

B. Contract liabilities

The Group has recognized the following revenue-related contract liabilities:

March 31, 2022 December 31, 2021 March 31, 2021 January 1,2021 advance sales receipts $ 366,060 $ 211,100 $ 363,209 $ 336,254 Revenue recognized that was included in the contract liability balance at the beginning of the period:

period:
Contract liabilities–advance sales receipts	For the three-month period ended March 31,2022 192,377 $	For the three-month period ended March 31,2021
		264,547 $

~29~

C. Refund liabilities (shown in other current liabilities)

The Group estimates the discounts based on accumulated experience. The estimation is subject to an assessment at each reporting date.

The following refund liabilities:

March 31, 2022 December 31, 2021 March 31, 2021 Refund liabilities – current $ 8,049,830 $ 7,521,493 $ 7,324,282

(22) Interest income

Interest income
Interest income from bank deposits	For the three-month period ended March 31,2022 74,343 $	For the three-month period ended March 31,2021
		102,799 $

(23) Other income

Otherincome Interest income from bank deposits		74,343 $	74,343 $		$	102,799
		For the three-month			For the	three-month
			period ended		period ended
			March 31,2022		March 31,2021
Dividend income		$	18,120		$	13,874
Other income			56,564			43,398
		$	74,684		$	57,272
Other gains and losses
		For the three-month			For the three-month
			period ended		period ended
			March 31,2022		March	31,2021
(Losses) Gains on disposal of property, plant and
equipment	($		2,354)	$		164
Net currency exchange gains (losses)			69,904	(		83,932)
(Losses)gains on financial assets at fair value
through profit or loss	(		82,518)			140,421
Gains arising from lease modifications			24			-
Other losses	(		4,883)	(		146)
	($		19,827)	$		56,507

(24) Other gains and losses

(25) Finance costs

Finance costs
Interest expense Bank borrowings Lease liabilities	For the three-month period ended March 31,2022 15,440 $ 7,027 22,467 $	For the three-month period ended March 31,2021
		18,537 $ 7,048
		25,585 $

~30~

(26) Expenses by nature

Expenses by nature
Employee benefit expenses Depreciation Amortisation	For the three-month period ended March 31,2022 8,097,634 $ 274,928 386,111	For the three-month period ended March 31,2021
		5,651,874 $ 229,570 284,821

(27) Employee benefit expenses

Employee benefit expenses
Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Total	For the three-month period ended March 31,2022 7,745,454 $ 191,221 95,000 65,959 8,097,634 $	For the three-month period ended March 31,2021
		5,318,063 $ 185,395 81,135 67,281
		5,651,874 $

A. In accordance with the Company’s Articles of Incorporation, the Company shall appropriate no higher than 3% for directors’ remuneration and no less than 1% for employees’ compensation, if the Company generates profit. If the Company has accumulated deficit, earnings should be reserved to cover losses before the appropriation of directors’ remuneration and employees’ compensation. Aforementioned employees’ compensation could be distributed by cash or stocks. Specifics of the compensation are to be determined by a majority vote at a meeting of the Board of Directors attended by at least two-thirds of the total number of directors. The resolution should be reported to the shareholders during the shareholders’ meeting.
B. For the three-month periods ended March 31, 2022 and 2021, employees’ compensation was accrued at $1,507,508 and $893,003, respectively; directors’ remuneration was accrued at $101,516 and $ 59,534, respectively. The amounts were estimated as operating cost or operating expense in accordance with the Company’s Articles of Incorporation.
On March 18, 2022, employees’ compensation was $4,956,694, and directors’ remuneration was $130,000 for 2021 resolved at the meeting of the Board of Directors agreed with those amounts recognized in the 2021 financial statements. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~31~

(28) Income tax

A. Income tax expense

ome tax Income tax expense
		For the three-month			For the three-month
			period ended			period ended
			March 31,2022			March 31,2021
Current income tax:
Current income tax on profit for the period	$		216,717	$		128,807
Deferred income tax:
Origination and reversal of temporary
differences	(		315)	(		729)
Income tax expense	$		216,402	$		128,078

B. As at March 31, 2022, the Company’s income tax returns through 2020 have been assessed and approved by the Tax Authority.

(29) Earnings per share

and approved by the Tax Authority. Earningsper share
Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	For the three-monthperiod ended March		31,2022
	Amount after tax 5,186,268 $ 5,186,268 $ - 5,186,268 $	Weighted average number of common shares outstanding (shares in thousands) 511,024 511,024 12,701 523,725	Earnings per share (in dollars)
			10.15 $
			9.90 $

~32~

For the three-month period ended March 31, 2021

Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	Amount after tax 3,054,765 $ 3,054,765 $ - 3,054,765 $	Weighted average number of common shares outstanding (shares in thousands) 510,685 510,685 6,592 517,277	Earnings per share (in dollars)
			5.98 $
			5.91 $

(30) Supplemental cash flow information

Investing activities with partial cash payments

Supplementalcashflow information Investing activities with partial cash payments common shares 3 $	,054	,765	,765	,765		517,277 5.91 $	517,277 5.91 $	517,277 5.91 $
		For the three-month				For the three-month
				period ended				period ended
				March 31,2022				March 31,2021
Purchase of property, plant and equipment	$			484,456		$		788,072
Add: Opening balance of payable on equipment				283,796				58,959
Less: Ending balance of payable on equipment	(			103,710)	(			114,029)
Cash paid during the period	$			664,542		$		733,002
			For the three-month				For the three-month
				period ended				period ended
				March 31,2022				March 31,2021
Purchase of intangible assets		$		1,321,533		$		225,232
Add: Opening balance of payable on
software and intellectual property				1,445,930				1,152,591
Less: Ending balance of payable on
software and intellectual property		(		2,006,073)		(		775,710)
Cash paid during the period		$		761,390		$		602,113

~33~

(31) Changes in liabilities from financing activities

Changes in liabilities from financing activities	Changes in liabilities from financing activities
Short-term Guarantee deposits Lease borrowings received liabilities At January 1, 2022 13,342,100 $ 1,448 $ 1,332,705 $ Changes in cash flow from financing activities 3,213,354) ( 204) ( 20,437) ( Interest paid - - 7,027) ( Interest of lease liabilities - - 7,027 Impact of changes in foreign exchange - - 5,816 Changes in other non-cash items - - 23,973 At March 31, 2022 10,128,746 $ 1,244 $ 1,342,057 $ Short-term Guarantee deposits borrowings received At January 1, 2021 11,456,690 $ 1,251 $ $ Changes in cash flow from financing activities 1,223,310 14) ( ( Interest paid - - ( Interest of lease liabilities - - Impact of changes in foreign exchange - - Changes in other non-cash items - - At March 31, 2021 12,680,000 $ 1,237 $ $		Long-term Liabilities from financing borrowings activities-total 1,002,799 $ 15,679,052 $ 221,900 3,012,095) ( - 7,027) ( - 7,027 - 5,816 1,448 25,421 1,226,147 $ 12,698,194 $ Lease Liabilities from financing liabilities activities-total 1,377,257 12,835,198 $ 26,206) 1,197,090 7,048) 7,048) ( 7,048 7,048 2,958 2,958 3,136 3,136 1,357,145 14,038,382 $
	$

~34~

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The ultimate controlling party of the Group is the Company.

(2) Names of related parties and relationship

Names of related parties and relationship
Names of relatedparties	Relationshipwith the Company
G.M.I Technology Inc. Actions Semiconductor Co., Ltd. C-Media Electronics Inc. Greatek Electronics Inc. EmBestor Technology Inc.	Other related party Other related party Other related party Other related party Other related party

(3) Significant related party transactions and balances

A. Operating revenue

gnificant related party transactions and balances Operating revenue
Sales of goods`﹕` G.M.I Technology Inc. Others	For the three-month period ended March 31,2022 4,437,927 $ 127,756 4,565,683 $	For the three-month period ended March 31,2021
		3,638,534 $ 149,333
		3,787,867 $

Goods are sold based on the price lists in force and terms that would be available to third parties, and the general collection term was 30 ~ 60 days after monthly billings.

B. Processing cost

Processing cost
Greatek Electronics Inc. Others	For the three-month period ended March 31,2022 344,692 $ 6,861 351,553 $	For the three-month period ended March 31,2021
		361,710 $ 1,331
		363,041 $

Processing cost is paid to related parties on normal commercial terms and conditions, and the general payment term was 69 days after monthly billings.

C. Receivables from related parties

Receivables from related parties
Accounts receivable`﹕` G.M.I Technology Inc. Other	March 31,2022 3,259,097 $ 30,019 3,289,116 $	December 31,2021 3,146,078 $ 46,106 3,192,184 $	March 31,2021
			2,971,824 $ 47,662
			3,019,486 $

Aforementioned receivables were 30 ~ 60 days after monthly billings. The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and

~35~

bear no interest.

D. Payables to related parties

bear no interest. Payables to related parties
Accounts payable`﹕` Greatek Electronics Inc. Others	March 31,2022 385,962 $ 2,157 388,119 $	December 31,2021 333,380 $ 1,033 334,413 $	March 31,2021
			378,779 $ 1,397
			380,176 $

The payment term above was 69 days after monthly billings. The payables to related parties arise mainly from processing cost. The payables bear no interest.

E. Other transactions and other (receivables) payables:

		For the	three-month period		For the	three-month period
		ended March 31,2022			ended March 31,2021
			Ending balance of other			Ending balance of other
	Amount		payable(receivable)	Amount		payable(receivable)
Other related parties-
Sales commissions	$	182,656	112,635 $	$	139,489	97,141 $
Technical royalty revenue	($	435)	- $	($	3,654)	- $

The payment term above was 49 days after monthly billings; the collection term was 30 ~ 60 days after monthly billings.

(4) Key management compensation

days after monthly billings. Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Total	For the three-month period ended March 31,2022 105,140 $ 932 106,072 $	For the three-month period ended March 31,2021
		77,327 $ 729
		78,056 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset Time deposits (shown in financial assets at amortised cost non-current) "	Book value	March 31,2021 30,821 $ 49,000 79,821 $	Purposes
	March 31,2022 December 31,2021 31,047 $ 31,048 $ 49,334 49,053 80,381 $ 80,101 $
			Guarantee for the importation customs duties of materials Guarantee for leasing land and office in science park

~36~

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Contingencies

A. In 2020, Divx, LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court of Delaware against the Company’s IC products. On July 4, 2021, DivX terminated the investigation against the Company in ITC.
B. In 2020, KONINKLIJKE PHILIPS N.V. and PHILIPS NORTH AMERICA LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court of Delaware against the Company’s IC products. On October 21, 2021, the Administrative Law Judge of ITC issued his initial determination finding noninfringement for the accused Company’s IC products and non-existence of the required domestic industry.
C. Future Link Systems, LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court for the Western District of Texas against the Company’s IC products. The cases are still pending, and the Company is unable to reliably determine the outcome of the cases.
D. BANDSPEED, LLC brought an action for patent infringement in United States District Court for the Western District of Texas against the Company’s IC products. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

(2) Commitments

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Information on the cash dividends from 2021 earnings distribution and capital surplus as resolved by the Board of Directors on April 22, 2022 is provided in Note 6(19).

12. OTHERS

(1) Capital management

There have been no significant changes as at March 31, 2022. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2021.

`（` Blank `）`

~37~

(2) Financial instruments

A. Financial instruments by category

March 31, 2022 December 31, 2021 March 31, 2021

Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost/ Receivables Cash and cash equivalents Financial assets at amortised cost Accounts receivable (including related parties) Other receivables Refundable deposits Financial liabilities Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Long-term borrowings Guarantee deposits received Other financial liabilities Lease liabilities	1,231,854 $ 3,423,958 $ 9,630,649 $ 47,810,860 15,863,104 188,826 712,939 74,206,378 $ 10,128,746 $ 3,276 11,743,943 26,124,972 1,226,147 1,244 8,049,830 57,278,158 $ 1,342,057 $	1,952,647 $ 3,644,878 $ 7,197,351 $ 43,820,977 15,989,005 156,928 734,855 67,899,116 $ 13,342,100 $ 3,276 11,439,981 24,746,394 1,002,799 1,448 7,521,493 58,057,491 $ 1,332,705 $	679,525 $
			3,193,493 $
			7,720,129 $ 37,624,813 14,155,807 361,255 29,887
			59,891,891 $
			12,680,000 $ 3,277 11,560,545 14,153,094 - 1,237 7,324,282
			45,722,435 $
			1,357,145 $

B. Financial risk management policies
(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.
(b) Risk management is carried out by a finance division (Group finance) under policies approved by the Board of Directors. Group finance identifies, evaluates, and hedges

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financial risks in close cooperation with the Group’s operating units.

C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to USD and CNY. Foreign exchange risk arises from future commercial transactions, recognized assets, and liabilities.
ii. Management has set up a policy to require the Group to manage its foreign exchange risk against its functional currency. The Group is required to hedge its entire foreign exchange risk exposure with the Group finance.
iii. The Group’s businesses involve some functional currency operations (the Company’s and other certain subsidiaries’ functional currency: NTD ； other certain subsidiaries’ functional currency: USD and CNY). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

March 31,2022	March 31,2022	Book value (NTD)
Foreign currency amount (In thousands) 378,542 $ 1,833,932 438,332	Exchange rate 28.622 28.622 28.622
		10,834,629 $ 52,490,802 12,545,939

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December 31,2021	December 31,2021	December 31,2021	December 31,2021	Book value (NTD) 10,298,105 $ 46,861,891 12,695,228
Foreign currency amount (In thousands)	Exchange rate 27.690 27.690 27.690 March 31,2021	Exchange rate
371,907 $ 1,692,376 458,477
Foreign currency amount (In thousands) 438,218 $ 1,546,593 457,494	Exchange rate 28.531 28.531 28.531			Book value (NTD)
			12,502,798 $ 44,125,845 13,052,761

The exchange gains (losses), including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three-month periods ended March 31, 2022 and 2021, amounted to $69,904 and ($83,932), respectively.

Analysis of foreign currency market risk arising from significant foreign exchange variation:

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For the three-month period ended March 31, 2022

Sensitivity analysis

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD	Effect on Effect on other comprehensive Degree of variation profit or loss income 1% 108,346 $ - $ 1% - 524,908 1% 125,459) ( - Effect on Effect on other comprehensive Degree of variation profit or loss income 1% 125,028 $ - $ 1% - 441,258 1% 130,528) ( - For the three-monthperiod ended March 31,2021 Sensitivityanalysis	Effect on Effect on other comprehensive Degree of variation profit or loss income 1% 108,346 $ - $ 1% - 524,908 1% 125,459) ( - Effect on Effect on other comprehensive Degree of variation profit or loss income 1% 125,028 $ - $ 1% - 441,258 1% 130,528) ( - For the three-monthperiod ended March 31,2021 Sensitivityanalysis	Effect on Effect on other comprehensive Degree of variation profit or loss income 1% 108,346 $ - $ 1% - 524,908 1% 125,459) ( - Effect on Effect on other comprehensive Degree of variation profit or loss income 1% 125,028 $ - $ 1% - 441,258 1% 130,528) ( - For the three-monthperiod ended March 31,2021 Sensitivityanalysis

		Sensitivityanalysis
		Effect on Degree of variation profit or loss 1% 125,028 $ 1% - 1% 130,528) (	Effect on other comprehensive income
			- $ 441,258 -

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.
ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, post-tax profit for the three-month periods ended March 31, 2022 and 2021 would have increased/decreased by $123,185 and $67,953, respectively, as a result of gains/losses on

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equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $342,396 and $319,349, respectively, as a result of gains/losses on equity securities classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Group has no material interest rate risk.

(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial assets at amortized cost.
ii. The Group manages their credit risk taking into consideration the entire Group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.
iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.
iv. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
- (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
- (ii) The disappearance of an active market for that financial asset because of financial difficulties;
- (iii) Default or delinquency in interest or principal repayments;
- (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
vi. The Group classifies customers’ accounts receivable in accordance with customer types. The Group applies the modified approach using provision matrix to estimate expected credit loss under the provision matrix basis.
vii. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

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viii. The Group used the forecast ability of semiconductor industry research report to adjust historical and timely information to assess the default possibility of accounts receivable. As at March 31, 2022, December 31, 2021 and March 31, 2021, the provision matrix are as follows:

as follows:
At March 31, 2022 Expected loss rate Total book value Loss allowance At December 31, 2021 Expected loss rate Total book value Loss allowance At March 31, 2021 Expected loss rate Total book value Loss allowance	Notpast due 0%~1% 15,410,743 $ 92,469 $ Notpast due 0%~1% 15,874,298 $ 96,119 $ Notpast due 0%~1% 14,002,420 $ 95,957 $	1~90 days past due 0%~1% 550,333 $ 5,503 $ 1~90 days past due 0%~1% 212,956 $ 2,130 $ 1~90 days past due 0%~1% 251,863 $ 2,519 $	Over 90 days past due 100% 8,336 $ 8,336 $ Over 90 days past due 100% 461 $ 461 $ Over 90 days past due 100% 434 $ 434 $	Total
				15,969,412 $
				106,308 $
				Total
				16,087,715 $
				98,710 $
				Total
				14,254,717 $
				98,910 $

ix. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable are as follows:

Movements in relation to the Group applying the modified allowance for accounts receivable are as follows: Expected loss rate 0%~1% 0%~1% Total book value 14,002,420 $ 251,863 $ $ Loss allowance 95,957 $ 2,519 $ $	approach to provide loss 100% 434 14,254,71 $ 434 98,91 $
At January 1 Provision for impairment loss At March 31 At January 1 Provision for impairment loss At March 31	2022
	Loss allowance for accounts receivable
	98,710 $ 7,598
	106,308 $
	2021
	Loss allowance for accounts receivable
	95,360 $ 3,550
	98,910 $

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(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group finance. Group finance monitors forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities.
ii. Group finance invests surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.
iii. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

Non-derivative financial liabilities:
Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term borrowings Guarantee deposits received Other financial liabilities Non-derivative financial liabilities: Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term borrowings Guarantee deposits received Other financial liabilities March 31, 2022 December 31, 2021	Less than 1 year 10,128,746 $ 3,276 11,743,943 26,124,972 120,913 - - 8,049,830 Less than 1 year 13,342,100 $ 3,276 11,439,981 24,746,394 115,821 - - 7,521,493	Between 1 and 5years - $ - - - 342,888 1,239,260 - - Between 1 and 5years - $ - - - 334,479 1,017,360 - -	Over 5years
			- $ - - - 1,327,031 - 1,244 - Over 5years
			- $ - - - 1,340,088 - 1,448 -

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Non-derivative financial liabilities:

Non-derivative financial liabilities:
Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Guarantee deposits received Other financial liabilities March 31, 2021	Less than 1 year 12,680,000 $ 3,277 11,560,545 14,153,094 121,741 - 7,324,282	Between 1 and 5years - $ - - - 326,941 - -	Over 5years
			- $ - - - 1,380,638 1,237 -

iv. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(10).
C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets is as follows:
(a) The related information of nature of the assets is as follows:

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March 31, 2022 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities Total December 31, 2021 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities Total March 31, 2021 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities Total	Level 1 1,231,854 $ 874,292 2,106,146 $ Level 1 1,952,647 $ 824,506 2,777,153 $ Level 1 679,525 $ 771,341 1,450,866 $	Level 2 - $ - - $ Level 2 - $ - - $ Level 2 - $ - - $	Level 3 - $ 2,549,666 2,549,666 $ Level 3 - $ 2,820,372 2,820,372 $ Level 3 - $ 2,422,152 2,422,152 $	Total
				1,231,854 $ 3,423,958
				4,655,812 $
				Total
				1,952,647 $ 3,644,878
				5,597,525 $
				Total
				679,525 $ 3,193,493
				3,873,018 $

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(b) The methods and assumptions the Group used to measure fair value are as follows:
i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

ClosedOpenConvertible Listed end end Government Corporate (exchangeable) shares fund fund bond bond bond Market quoted Closing Closing Net asset Translation Weighted Closing price price price price value price average quoted price

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.
iii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs.
D. For the three-month periods ended March 31, 2022 and 2021, there was no transfer between Level 1 and Level 2.
E. The following chart is the movement of Level 3 for the three-month periods ended March 31, 2022 and 2021:

2022 and 2021:
2022 Non-derivative equityinstrument At January 1 2,820,372 $ (Loss)income recognized in other comprehensive income 270,706) ( At March 31 2,549,666 $	2021
	Non-derivative equityinstrument
	2,031,480 $ 390,672
	2,422,152 $

F. For the three-month periods ended March 31, 2022 and 2021, there was no transfer into or out from Level 3.
G. The finance division is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of

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information is independent, reliable and in line with other resources and represented as the exercisable price, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non- derivative equity Unlisted shares 〃 Private equity fund investment Non- derivative equity Unlisted shares 〃 Private equity fund investment	Fair value at March 31, 2022	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	110,741 $ 31,839 2,407,086 Fair value at December 31, 2021	Market comparable companies Net asset value Net asset value Valuation technique	Price to book ratio multiple Not applicable Not applicable Significant unobservable input	14.38 - - Range (weighted average)	The higher the multiple, the higher the fair value Not applicable Not applicable Relationship of inputs to fair value
	106,304 $ 30,270 2,683,798	Market comparable companies Net asset value Net asset value	Price to book ratio multiple Not applicable Not applicable	15.33 - -	The higher the multiple, the higher the fair value Not applicable Not applicable

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Non- derivative equity Unlisted shares 〃 Private equity fund investment	Fair value at March 31, 2021	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	109,533 $ 23,052 2,289,567	Market comparable companies Net asset value Net asset value	Price to book ratio multiple Not applicable Not applicable	4.37 - -	The higher the multiple, the higher the fair value Not applicable Not applicable

I. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

Financial assets Equity instrument	Input	Change ± 1%	Favourable Unfavourable Favourable Unfavourable Change change Change change - $ - $ 7,059 $ 7,059) ($ March 31,2022 Recognized inprofit or loss comprehensive income Recognized in other
			Favourable Unfavourable Change change - $ - $ Recognized inprofit or loss
	Price to book ratio multiple

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Financial assets Equity instrument Financial assets Equity instrument	Input	Change ± 1% Change ± 1%	Favourable Unfavourable Favourable Unfavourable Change change Change change - $ - $ 7,283 $ 7,283) ($ Favourable Unfavourable Favourable Unfavourable Change change Change change - $ - $ 1,903 $ 1,903) ($ December 31,2021 Recognized in other Recognized inprofit or loss comprehensive income March 31,2021 Recognized in other Recognized inprofit or loss comprehensive income
	Price to book ratio multiple Input
			Favourable Unfavourable Change change - $ - $ Recognized inprofit or loss
	Price to book ratio multiple

’ -
(4) Effects on the Group s operation arising from the COVID 19 pandemic

In March 2022, the Company implemented the related prevention measures in response to the outbreak of Covid-19 by limiting the employees to go out and closing unnecessary service sites. The Company adjusted the working pattern of its employees and other measures according to the government regulations. As at March 31, 2022, the Group assessed that the epidemic had no significant impact on the overall operating activities and financial statements.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information
A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paidin capital or more: Please refer to table 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.
I. Trading in derivative instruments undertaken during the reporting periods: None.

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J. Significant inter-company transactions during the reporting periods: Please refer to table 6.

(2) Information on investees

Names, locations, and other information of investee companies (not including investees in Mainland China): Please refer to table 7.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to tables 1, 2 and 6.

(4) Major shareholders information

As at March 31, 2022, the Company had no shareholders who hold over 5% (including 5%) of the Company’s shares.

14. SEGMENT INFORMATION

(1) General information

The Group operates business only in a single industry. The Chief Operating Decision-Maker, who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

(2) Measurement of segment information

The Chief Operating Decision-Maker assesses the performance of the operating segments based on the consolidated financial statements. The accounting policy of operating segments is the same as that described in Note 4.

(3) Information on segment profit (loss), assets and liabilities

The revenue from external customers and segment financial information reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the consolidated statement of comprehensive income.

(4) Reconciliation for segment profit (loss)

The segment assets, liabilities and profit before income tax reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the consolidated balance sheet and consolidated statement of comprehensive income. As a result, no reconciliation was reported.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Loans to others

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

For the three-month period ended March 31, 2022

No (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the three- month period ended March 31,2022 (Note 3)	Balance at March 31,2022	Actual amount drawn down (Note 4)	Interest rate(%)	Nature of loan	Amount of transactions with the borrower	Reason for short- term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted (Note 2)	Footnote
													Item	Value
`0`	Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	Other receivables-related parties	Y	`300,000` `$`	`300,000` `$`	`87,000` `$`	`0.82`	`Short-term` `financing`	`-` `$`	Operations	- $	None	- $	`4,645,951` `$`	`18,583,805` `$`	None
`0`	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	Other receivables-related parties	Y	`57,244`	`57,244`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,645,951`	`18,583,805`	None
`0`	Realtek Semiconductor Corporation	Amber Universal Inc.	Other receivables-related parties	Y	`1,717,320`	`1,717,320`	`1,684,405`	`0.58`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,645,951`	`18,583,805`	None
`0`	Realtek Semiconductor Corporation	Bluocean Inc.	Other receivables-related parties	Y	`1,717,320`	`1,717,320`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,645,951`	`18,583,805`	None
`0`	Realtek Semiconductor Corporation	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	`1,717,320`	`1,717,320`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,645,951`	`18,583,805`	None
`0`	Realtek Semiconductor Corporation	Leading Enterprises Limited	Other receivables-related parties	Y	`2,575,980`	`2,575,980`	`2,504,425`	`0.58`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,645,951`	`18,583,805`	None
`1`	Leading Enterprises Limited	Bluocean Inc.	Other receivables-related parties	Y	`1,717,320`	`1,717,320`	`1,663,081`	`0.58`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`1`	Leading Enterprises Limited	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	`1,717,320`	`1,717,320`	`1,456,860`	`0.58`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`2`	Amber Universal Inc.	Blueocean Inc.	Other receivables-related parties	Y	`1,431,100`	`1,431,100`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`2`	Amber Universal Inc.	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	`2,862,200`	`2,862,200`	`2,853,613`	`0.58`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`3`	Cortina Access, Inc.	Leading Enterprises Limited	Other receivables-related parties	Y	`858,660`	`858,660`	`737,017`	`0.44`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`4`	Realtek Investment Singapore Private Limited	Realtek Singapore Private Limited	Other receivables-related parties	Y	`2,862,200`	`2,862,200`	`2,498,701`	`0.58`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None

Table 1 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Loans to others

For the three-month period ended March 31, 2022

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

No (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the three- month period ended March 31,2022 (Note 3)	Balance at March 31,2022	Actual amount drawn down (Note 4)	Interest rate(%)	Nature of loan	Amount of transactions with the borrower	Reason for short- term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted (Note 2)	Footnote
													Item	Value
`5`	Realtek Singapore Private Limited	Leading Enterprises Limited	Other receivables-related parties	Y	`2,862,200` `$`	`2,862,200` `$`	`2,862,200` `$`	`0.58`	`Short-term` `financing`	`-` `$`	Operations	`-` `$`	None	`-` `$`	`18,583,805` `$`	`18,583,805` `$`	None
`5`	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	Other receivables-related parties	Y	`57,244`	`57,244`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`5`	Realtek Singapore Private Limited	Realsil Microelectronics Corp.	Other receivables-related parties	Y	`858,660`	`858,660`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`5`	Realtek Singapore Private Limited	Realtek Investment Singapore Private Limited	Other receivables-related parties	Y	`2,862,200`	`2,862,200`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`5`	Realtek Singapore Private Limited	Bluocean Inc.	Other receivables-related parties	Y	`2,862,200`	`2,862,200`	`2,862,200`	`0.58`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`6`	Realsil Microelectronics Corp.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	`360,976`	`360,976`	`80,317`	`4.35`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`6`	Realsil Microelectronics Corp.	RayMX Microelectronics Corp.	Other receivables-related parties	Y	`360,976`	`360,976`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None
`7`	Cortina Network Systems Shanghai Co., Ltd.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	`135,366`	`135,366`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,583,805`	`18,583,805`	None

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

‘ ’ (1) The Company is 0 .

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: The Company’s “Procedures for Provision of Loans” are as follows:

(1) Ceiling on total loans granted by the Company to all parties is 40% of the Company’s net assets value as per its most recent financial statements.

(2) Limit on loans to a single party with business transactions is the business transactions occurred between the creditor and borrower in the current year. The business transaction amount is the higher of purchasing and selling during current year on the year of financing.

(3) For companies needing for short-term financing, the cumulative lending amount may not exceed 40% of the borrowing company’s net assets based on its latest financial statements audited or reviewed by independent auditors.

The amount the Company or its subsidiaries lend to an individual entity may not exceed 10% of the Company’s or subsidiary’s net assets based on its latest financial statements audited or reviewed by independent auditors.

For the foreign companies which the Company holds 100% of the voting rights directly or indirectly, limit on loans is not restricted as stipulated in the above item (3). However, the ceiling on total loans and limit on loans to a single party may not exceed 40% of the Company’s net assets based on its latest financial statements audited or reviewed by independent auditors.

Note 3: Acccumulated maximum outstandings balance of loans to others as of the reporting month of the current period.

Note 4: Fill in the actual amount of loans to others used by the borrowing company.

Table 1 Page 2

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Provision of endorsements and guarantees to others For the three-month period ended March 31, 2022

Table 2 Number (Note 1)	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limited on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ amount as at March 31, 2022 (Note 4)	Outstanding endorsement/ guarantee amount at March 31, 2022 (Note 5)	Actual amont drawn down (Note 6)	Amount of endorsements/ gurantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Expressed in thousands of NTD (Except as otherwise indicated) Provision of endorsements/ guarantees to the party in Mainland China (Note 7) Footnote Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Expressed in thousands of NTD (Except as otherwise indicated) Provision of endorsements/ guarantees to the party in Mainland China (Note 7) Footnote Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)
		Companyname	Relationship with the endorser/ guarantor (Note2)
`0`	Realtek Semiconductor Corporation	Realtek Singapore Private Limited	`2`	`23,229,756` `$`	`4,645,951` `$`	`4,645,951` `$`	`-` `$`	`-` `$`	`10%`	`23,229,756` `$`	`Y`	`N`	`N`
`0`	Realtek Semiconductor Corporation	Leading Enterprises Limited	`2`	`23,229,756`	`9,291,902`	`9,291,902`	`-`	`-`	`20%`	`23,229,756`	`Y`	`N`	`N`
`0`	Realtek Semiconductor Corporation	Suzhn PanKore Integrated Grcuit Technology Co., Ltd.	`2`	`23,229,756`	`464,595`	`464,595`	`-`	`-`	`1%`	`23,229,756`	`Y`	`N`	`Y`
`0`	Realtek Semiconductor Corporation	Realsil Microelectronics Corp.	`2`	`23,229,756`	`1,393,785`	`1,393,785`	`-`	`-`	`3%`	`23,229,756`	`Y`	`N`	`Y`
`0`	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	`2`	`23,229,756`	`1,393,785`	`1,393,785`	`18,625`	`-`	`3%`	`23,229,756`	`Y`	`N`	`Y`
`0`	Realtek Semiconductor Corporation	AICONNX Technology Corporation	`2`	`23,229,756`	`929,190`	`929,190`	`-`	`-`	`2%`	`23,229,756`	`Y`	`N`	`N`
`1`	Leading Enterprises Limited	Realsil Microelectronics Corp.	`2`	`23,229,756`	`572,440`	`572,440`	`-`	`-`	`1%`	`23,229,756`	`N`	`N`	`Y`
`2`	Realsil Microelectronics Corp.	RayMX Microelectronics Corp.	`2`	`23,229,756`	`572,440`	`572,440`	`-`	`-`	`1%`	`23,229,756`	`N`	`N`	`Y`

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

‘ ’ (1)The Company is 0 .

(2)The subsidiaries are numbered in order starting from ‘1’. Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories: (1) Having business relationship.

(2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

(3) The endorser/guarantor company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.

(4) The endorser/guarantor parent company owns directly or indirectly owns more than 50% voting shares of the endorsed/guaranteed subsidiary.

(5) Mutual guarantee of the trade as required by the construction contract.

(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

(7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Note 3: Ceiling on total endorsements/guarantees granted by the Company and subsidiaries is 50% of the Company’s net asset based on the latest financial statements audited or reviewed by independent auditors, and limit on endorsements/guarantees to a single party is 50% of the Company's net asset based on the latest financial statements audited or reviewed by independent auditors.

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Note 5: Fill in the amount approved by the Board of Directors or the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Gorverning Loaning of Funds and Making of Endorsements/Guarantees by Public Companies. Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Table 2

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

March 31, 2022

Securities held by	Marketable securities `（`Note 1`）`	Relationship with the securities issuer(Note 2)	General ledger account		As of March31,2022	As of March31,2022
				Number of shares	Book value (Note3)	Ownership (%)	Fairvalue
Realtek Semiconductor Corporation	C-media Electronics Inc. - Common stock	Other related parties	Financial assets at fair value through profit or loss	`1,278,501`	`$ 98,189`	`1.63%`	`$ 98,189`
Realking Investment Co., Ltd.	Compal broadband networks Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	`3,575,000`	`108,144`	`5.23%`	`108,144`
Realsun Investment Co., Ltd.	Shieh-Yong Investment Co., Ltd. - Common stock	None	Financial assets at fair value through other comprehensive income	`48,736,172`	`624,000`	`3.03%`	`624,000`
Realsun Investment Co., Ltd.	Compal broadband networks Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	`3,575,000`	`108,144`	`5.23%`	`108,144`
Leading Enterprises Limited	Fortemedia Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	`8,837,301`	`93,568`	`6.89%`	`93,568`
Leading Enterprises Limited	Starix Technology, Inc.-Preferred stock	None	Financial assets at fair value through other comprehensive income	`5,000,000`	`17,173`	`-`	`17,173`
Leading Enterprises Limited	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	`9,000,000`	`1,169,080`	`12.49%`	`1,169,080`
Amber Universal Inc.	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	`4,726,836`	`614,006`	`6.56%`	`614,006`
Hung-wei Venture Capital Co., Ltd.	United Microelectronics Corporation - Common stock	None	Financial assets at fair value through other comprehensive income	`336,346`	`18,163`	`-`	`18,163`
Hung-wei Venture Capital Co., Ltd.	C-media Electronics Inc.- Common stock	Other related parties	Financial assets at fair value through profit or loss	`2,274,875`	`174,710`	`2.85%`	`174,710`
Hung-wei Venture Capital Co., Ltd.	Greatek Electroninc Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	`5,823,602`	`432,111`	`1.02%`	`432,111`
Hung-wei Venture Capital Co., Ltd.	Subtron technology Co., Ltd - Common stock	None	Financial assets at fair value through other comprehensive income	`1,093,968`	`56,886`	`0.37%`	`56,886`
Hung-wei Venture Capital Co., Ltd.	Embestor Technology Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	`2,800,000`	`31,839`	`10.77%`	`31,839`

Table 3 Page 1

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

March 31, 2022

Securities held by	Marketable securities `（`Note 1`）`	Relationship with the securities issuer(Note 2)	General ledger account		As of March31,2022	As of March31,2022
				Number of shares	Book value (Note3)	Ownership (%)	Fairvalue
Blueocean Inc.	EARGO, Inc.	None	Financial assets at fair value through profit or loss	`797,261`	`$ 120,714`	`2.30%`	`$ 120,714`
Talent Eagle Enterprise Inc.	EARGO, Inc.	None	Financial assets at fair value through profit or loss	`199,000`	`30,130`	`0.51%`	`30,130`
Realsil Microelectronics Corp.	Cuam Money Fund	None	Financial assets at fair value through profit or loss	`30,076,330`	`135,709`	`-`	`135,709`
Realsil Microelectronics Corp.	Guang-Fa Demand Policy Loan Fund	None	Financial assets at fair value through profit or loss	`2,866`	`13`	`-`	`13`
Realsil Microelectronics Corp.	Jian-Xin Monetary Fund	None	Financial assets at fair value through profit or loss	`7,870`	`35`	`-`	`35`
Realsil Microelectronics Corp.	ICBC Cash Fund	None	Financial assets at fair value through profit or loss	`10,006,639`	`45,152`	`-`	`45,152`
Realsil Microelectronics Corp.	ICBC Salary Monetary Fund	None	Financial assets at fair value through profit or loss	`30,000,000`	`135,365`	`-`	`135,365`
Realsil Microelectronics Corp.	JIA SHI Monetary Fund	None	Financial assets at fair value through profit or loss	`5,001,163`	`22,566`	`-`	`22,566`
Realsil Microelectronics Corp.	BOC Cash Fund	None	Financial assets at fair value through profit or loss	`20,000,000`	`90,243`	`-`	`90,243`
Realsil Microelectronics Corp.	Guang-Fa Currency Class B Fund	None	Financial assets at fair value through profit or loss	`49,268,416`	`222,307`	`-`	`222,307`
Realsil Microelectronics Corp.	WAN JIA Monetary Fund	None	Financial assets at fair value through profit or loss	`10,000,000`	`45,122`	`-`	`45,122`
Realtek Semiconductor (Shen Zhen) Corp.	Pu-Yin Monetary Fund	None	Financial assets at fair value through profit or loss	`25,240,415`	`113,889`	`-`	`113,889`
Realtek Semiconductor (Shen Zhen) Corp.	Ri-Ri-Xin Fund	None	Financial assets at fair value through profit or loss	`9,500,000`	`42,957`	`-`	`42,957`
Cortina Network Systems Shanghai Co. Ltd.	Zhou Zhou Fa Fund	None	Financial assets at fair value through profit or loss	`4,657,932`	`28,439`	`-`	`28,439`
Cortina Network Systems Shanghai Co. Ltd.	Step by step Gold Find	None	Financial assets at fair value through profit or loss	`17,100,000`	`77,158`	`-`	`77,158`
Bluocean Inc.	CyWeeMotion Group Limited	None	Financial assets at fair value through other comprehensive income	`8,422,256`	`-`	`7.01%`	`-`

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 ‘Financial instrument'. Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3 Page 2

Table 4

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

For the three-month period ended March 31, 2022

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchase/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)
			Purchase (sales)	Amount	Percentage of total purchase (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	(Sales)	2,817,286) ($	(9%)	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	2,114,167 $	13%
Realtek Semiconductor Corporation	Actions Semiconductor Co., Ltd.	Other related parties	(Sales)	34,046) (	0%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	24,731	0%
Realtek Semiconductor Corporation	C-Media Electronics Inc.	Other related parties	(Sales)	90,403) (	0%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	5,411	0%
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	(Sales)	1,583,697) (	(5%)	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	1,119,729	7%
RayMX Microelectronics Corp.	G.M.I Technology Inc.	Other related parties	(Sales)	36,944) (	0%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	25,201	0%
Realtek Semiconductor Corporation	Greatek Electronics Inc.	Other related parties	Purchase	252,065	2%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	271,240) (	3%
Realtek Singapore Private Limited	Greatek Electronics Inc.	Other related parties	Purchase	92,346	1%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	114,722) (	1%

Table 4

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

March 31, 2022

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31,2022	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	2,114,167 $	5.81	$ -	-	973,440 $	21,355) ($
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	1,119,729	5.15	-	-	523,362	- $

Table 5

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Significant inter-company transactions during the reporting period For the three-month period ended March 31, 2022

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues or totalassets (Note 3)
`0`	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	`1`	Other receivables	$ 46,566	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.04%
`1`	Realtek Singapore Private Limited	Realsil Microelectronics Corp.	`3`	Technical service fees	630,614	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	2.12%
`1`	Realtek Singapore Private Limited	Realtek Semiconductor (Shen Zhen) Corp.	`3`	Technical service fees	121,919	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.41%
`1`	Realtek Singapore Private Limited	Cortina Access, Inc.	`3`	Technical service fees	50,544	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.17%
`1`	Realtek Singapore Private Limited	Cortina Access, Inc.	`3`	Other payables	16,696	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.02%
`1`	Realtek Singapore Private Limited	Cortina Network Systems Shanghai Co. Ltd.	`3`	Technical service fees	33,787	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.11%
`1`	Realtek Singapore Private Limited	Cortina Network Systems Shanghai Co. Ltd.	`3`	Other payables	34,504	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.03%
`1`	Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	`3`	Technical service fees	55,154	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.19%
`1`	Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	`3`	Other payables	13,630	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.01%
`1`	Realtek Singapore Private Limited	Realtek Semiconductor (Japan) Corp.	`3`	Technical service fees	15,168	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.05%
`1`	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	`3`	Other receivables	46,566	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.04%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

‘ ’ (1) Parent company is 0 .

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the

subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.): (1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: Only transactions above NT$10 million are disclosed. Transactions of related parties are not further disclosed here.

Table 6 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the three-month period ended March 31, 2022

Investor Table 7	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Sharesheld as atMarch31,2022	Sharesheld as atMarch31,2022	Sharesheld as atMarch31,2022	Net profit (loss) of the investee for the three-month ended March31,2022	Investment income (loss) recognised by the Company for the three-month ended March31,2022 Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Investment income (loss) recognised by the Company for the three-month ended March31,2022 Footnote Expressed in thousands of NTD (Except as otherwise indicated)
				Balance as at March31,2022	Balance as at December 31, 2021	Numberofshares	Ownership (%)	Bookvalue
Realtek Semiconductor Corporation	Leading Enterprises Limited	British Virgin Islands	Investment holdings	$ 14,137,264	$ 13,676,922	34,630	100%	$ 13,491,826	65,914) ($	65,914) ($	Subsidiary
Realtek Semiconductor Corporation	Amber Universal Inc.	British Virgin Islands	Investment holdings	4,505,512	4,358,823	41,432	100%	3,511,857	18,978) (	18,978) (	Subsidiary
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	Singapore	ICs manufacturing, design, research, development, sales, and marketing	4,061,035	3,928,798	89,856,425	100%	23,599,670	4,393,030	4,393,445	Subsidiary
Realtek Semiconductor Corporation	Bluocean Inc.	Cayman Islands	Investment holdings	3,149,851	3,047,285	110,050,000	100%	3,386,057	13,891) (	13,891) (	Subsidiary
Realtek Semiconductor Corporation	Talent Eagle Enterprise Inc.	Cayman Islands	Investment holdings	3,265,770	3,159,429	114,100,000	100%	2,139,277	123,601) (	123,601) (	Subsidiary
Realtek Semiconductor Corporation	Realtek Investment Singapore Private Limited	Singapore	Investment holdings	5,724,400	5,538,000	200,000,000	100%	6,353,102	8,235	8,235	Subsidiary
Realtek Semiconductor Corporation	Realsun Investments Co., Ltd.	Taiwan	Investment holdings	280,000	280,000	28,000,000	100%	779,045	16,907	16,907	Subsidiary
Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	Taiwan	Investment holdings	250,000	250,000	25,000,000	100%	698,995	55,772) (	55,772) (	Subsidiary
Realtek Semiconductor Corporation	Realking Investments Co., Ltd.	Taiwan	Investment holdings	293,930	293,930	29,392,985	100%	278,709	3,430) (	3,430) (	Subsidiary
Realtek Semiconductor Corporation	Realsun Technology Corporatioin	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	5,000	5,000	500,000	100%	5,045	22) (	22) (	Subsidiary
Realtek Semiconductor Corporation	Bobitag Inc.	Taiwan	Manufacturing and installation of computer equipment and wholesasle, retail and related services of electronic materials and information/software	19,189	19,189	1,918,910	66.67%	19,281	43	29	Subsidiary
Realtek Semiconductor Corporation	AICONNX Technology Corporation	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	20,000	20,000	2,000,000	100%	21,506	1,609	1,526	Subsidiary

Table 7 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the three-month period ended March 31, 2022

Table 7 Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Sharesheld as atMarch31,2022	Sharesheld as atMarch31,2022	Sharesheld as atMarch31,2022	Net profit (loss) of the investee for the three-month ended March31,2022	Expressed in thousands of NTD (Except as otherwise indicated) Investment income (loss) recognised by the Company for the three-month ended March31,2022 Footnote	Expressed in thousands of NTD (Except as otherwise indicated) Investment income (loss) recognised by the Company for the three-month ended March31,2022 Footnote
				Balance as at March31,2022	Balance as at December 31, 2021	Numberofshares	Ownership (%)	Bookvalue
Realtek Semiconductor Corporation	Estinet Technologies Incorporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	$ 110,000	$ 110,000	2,000,000	6.89%	$ 4,724	12,173) ($	374) ($	Investments accounted for under equity method
Realking Investments Co., Ltd.	Innorich Venture Capital Corp.	Taiwan	Venture capital activities	200,000	200,000	20,000,000	37.38%	139,689	3,337) (	2,930) (	Investments accounted for under equity method
Realking Investments Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	10,000	10,000	1,000,000	10%	9,173	5,334) (	533) (	Investments accounted for under equity method
Realking Investments Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	23,000	23,000	2,300,000	23%	21,097	5,334) (	1,227) (	Investments accounted for under equity method
Hung-wei Venture Capital Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	12,000	12,000	1,200,000	12%	11,007	5,334) (	640) (	Investments accounted for under equity method
Leading Enterprises Limited	Realtek Semiconductor (Japan) Corp.	Japan	Technical support and information service	4,706	4,812	400	100%	5,883	3,787	3,787	Sub-Subsidiary
Leading Enterprises Limited	Circon Universal Inc.	Mauritius	Investment holdings	8,587	8,307	300,000	100%	7,270	94) (	94) (	Sub-Subsidiary
Amber Universal Inc.	Realtek Semiconductor (Hong Kong)Limited	Hong Kong	Information services and technical support	5,484	5,326	-	100%	1,052	12) (	12) (	Sub-Subsidiary
Realtek Singapore Private Limited	Empsonic Enterprises Inc.	Mauritius	Investment holdings	808,572	782,243	2,825,000	100%	2,023,233	11,580) (	11,580) (	Sub-Subsidiary
Realtek Singapore Private Limited	Cortina Access Inc.	U.S.A	R&D and technical support	1,169,094	1,131,026	16,892	100%	866,139	3,192	3,192	Sub-Subsidiary

Table 7 Page 2

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the three-month period ended March 31, 2022

Table 7 Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Sharesheld as atMarch31,2022	Sharesheld as atMarch31,2022	Sharesheld as atMarch31,2022	Net profit (loss) of the investee for the three-month ended March31,2022	Expressed in thousands of NTD (Except as otherwise indicated) Investment income (loss) recognised by the Company for the three-month ended March31,2022 Footnote	Expressed in thousands of NTD (Except as otherwise indicated) Investment income (loss) recognised by the Company for the three-month ended March31,2022 Footnote
				Balance as at March31,2022	Balance as at December 31, 2021	Numberofshares	Ownership (%)	Bookvalue
Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	Taiwan	R&D and technical support	$ 57,244	$ 55,380	21,130,000	100%	$ 60,252	6,461 $	6,461 $	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	Vietnam	R&D and technical support	114,488	110,760	4,000,000	100%	80,126	582	582	Sub-Subsidiary
Talent Eagle Enterprise Inc.	Ubilinx Technology Inc.	U.S.A	R&D and technical support	1,717,320	1,661,400	60,000,000	100%	136,719	123,384) (	123,384) (	Sub-Subsidiary
Bluocean Inc.	Realtek Semiconductor (Malaysia)Limited	Malaysia	R&D and technical support	71,130	69,275	10,450,000	100%	64,337	587	587	Sub-Subsidiary
Bluocean Inc.	Realtek Korea Inc.	Korea	R&D and technical support	47,227	-	200,000	100%	34,526	12,504) (	12,504) (	Sub-Subsidiary

Note ： The amount of foreign currencies denominated in New Taiwan dollars in this table, which relateds to income and expenses which re-translated at the average exchange rate from January 1, 2022 to March 31, 2022, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

Table 7 Page 3

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investments in Mainland China

For the three-month period ended March 31, 2022

Investee in Mainland China	Mainbusiness activities	Paid-inCapital	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2022	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the three-month period ended March31,2022	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the three-month period ended March31,2022	Accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2022	Net income of investee for the three-month period ended March31,2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the three- month period ended March 31, 2022 (Note2(2)C)	Book value of investment in Mainland China as of March 31, 2022	Accumulated amount of investment income remitted back to Taiwan as of March 31, 2022
					Remitted to Mainland China	Remitted back to Taiwan
Cortina Network Systems Shanghai Co., Ltd. Realsil Microelectronics Corp. Realtek Semiconductor (Shen Zhen) Corp. RayMX Microelectronics Corp. Suzhou Pankore Integrated Circuit Technology Co. Ltd. Companyname	R&D and technical support R&D and technical support R&D and technical support ICs manufacturing, design, research, development, sales, and marketing ICs manufacturing, design, research, development, sales, and marketing Accumulated amount of remittance from Taiwan to Mainland China as of March31,2022	103,039 $ 801,416 143,110 118,444 45,122 Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	(2) (2) (2) (2) (2) Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA	103,039 $ 801,416 143,110 118,444 45,122	$ - - - - -	$ - - - - -	103,039 $ 801,416 143,110 118,444 45,122	703) ($ 11,499) ( 18,920) ( 9,492 9,457) (	100% 100% 100% 100% 100%	703) ($ 11,499) ( 18,920) ( 9,492 10,914) (	110,125 $ 2,021,202 276,939 403,147 69,462) (	$ - - - - -
Cortina Network Systems Shanghai Co., L d Realsil Microlectronics Corp. Realtek Semiconductor (Shan Zhen) Corp. RayMX Microelectronics Corp. Suzhou Pankore Integrated Circuit Technology Co. Ltd.	103,039 $ 801,416 143,110 118,444 45,122	103,039 $ 801,416 143,110 118,444 45,122	$ 27,875,707

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

(3) Others.

Note 2: In the Investment income (loss) recognised by the Company for the three-month period ended March 31, 2022 column, except for the financial statements of Cortina Network Systems Shanghai Co. Ltd. were audited by other independent accountants, the remaining financial statements were audited by the independent accountants of parent company in Taiwan.

Note 3: The amount of foreign currencies denominated in New Taiwan dollars in this table, which relateds to income and expenses which were re-translated at the average exchange rate from January 1, 2022 to March 31, 2022, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

Table 8

AI assistant

RT — Interim / Quarterly Report 2022

52043_rns_2022-12-09_4279ee57-99b2-46cc-b678-b466d1a5b8d8.pdf

Introduction

Scope of review

Basis for qualified conclusion

Qualified conclusion

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PREIODS ENDED MARCH 31, 2022 AND 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PREIODS ENDED MARCH 31, 2022 AND 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

1. HISTORY AND ORGANISATION

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

B. Subsidiaries included in the consolidated financial statements:

(4) Employee benefits

(5) Income tax

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(2) Financial assets at fair value through profit or loss

(3) Financial assets at fair value through other comprehensive income

(4) Financial assets at amortized cost

(5) Accounts receivable

(6) Inventories

(7) Investments accounted for under equity method

(8) Property, plant and equipment

－ (9) Leasing arrangements lessee

(10) Investment property

(11) Intangible assets

(12) Short-term borrowings

(15) Pension

(16) Provision

(17) Share capital

(18) Capital surplus

(19) Retained earnings

(20) Other equity items

A. Disaggregation of revenue from contracts with customers

B. Contract liabilities

C. Refund liabilities (shown in other current liabilities)

(22) Interest income

(23) Other income

(24) Other gains and losses

(25) Finance costs

(26) Expenses by nature

(27) Employee benefit expenses

(28) Income tax

A. Income tax expense

(29) Earnings per share

(30) Supplemental cash flow information

(31) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

(2) Names of related parties and relationship

(3) Significant related party transactions and balances

A. Operating revenue

bear no interest.

(4) Key management compensation

8. PLEDGED ASSETS

(1) Contingencies

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital management

（ Blank ）

RT Interim / Quarterly Report 2022

`－` (9) Leasing arrangements lessee

`（` Blank `）`